ABSTRACT
The principal conservation problem created by unregulated exploitation of petroleum deposits is the loss of otherwise recoverable oil and gas brought about by high initial rates of production from new reservoirs. Dense drilling poses a conservation problem partly because it implements high initial rates of production. But beyond that, dense drilling needlessly increases reservoir development costs and, because it is anticipated by explorers, artificially contracts the margin of profitable exploration. Consequently, control of well spacing lies with production control at the heart of conservation regulation.
